Best Investment Options in India | Credit Help India

10 Best Investment Options In India For 2021 With High Returns

Various investors wish to make investments in such a way that they can get extreme returns as fast as possible. Due to this reason, many are always n the search for top investment plans from where they can double the money in a few months or years with lesser or no risk.

A high-return, low-risk combination in an investment product, unfortunately, does not exist. Risk and returns are directly related, they go parallel, i.e., the higher the returns, the higher the risk.


1. Public Provident Fund (PPF)

Investment in a PPF account can save people from tax. Since investment in PPF can be avail under section 80C on the IT Act. 



Higher interest rate than bank fixed deposit

Returns are tax-free

Approx annual return = 7.1%



The user cannot close the PPF account before 15 years.

The user can do Partial withdrawal after completion of 6 years.


2. National Pension System (NPS)

NPS is a pension scheme that is available across various jobs and locations. You do not need to change your fund while changing your job or city. All the contributions made up to Rs. 1.5 Lacs into Tier I capital comes under section 80C. By this person can save Rs. 2 Lacs of tax.



Approx return per year = 8% to 10%

Years to double the investment amount= 7.2 to 9 years



The customer can't withdraw the amount before the age of 60 years.

Only 25% early withdrawal is permitted for certain purposes.

The person can withdraw only 60% which is tax-free and the rest 40% of the corpus is kept to receive a regular pension.


3. Equity Linked Savings Scheme (ELSS)

People will get a higher return of 15% to 18% at investing in ELSS. The investment made in ELSS funds have the least lock-in period of 3 years and any earnings over and above Rs. 1 Lac are taxable.



Approx return per year = 15% to 18%

Years took to double the investment = 4 to 4.8 years



Treated as LTCG and earnings over Rs. 1 Lakh is taxed at 10%.


4. Tax Savings Fixed Deposit

If anyone needs to be a safe investment option. Customer can opt for fixed deposit services from any they rely on. The interest rates can differ from bank to bank and are in the range of 5% to 7.25%.



Approx return per year = 5% to 7.25%

Time to double the investment = 9.9 to 14.4 years



Interest earned from FD is taxable.

Lock-in period of 5 years.


5. Unit Linked Insurance Plans (ULIPs)

Investments in ULIPs provides wealth creation option along with life cover. Moreover, the returns on maturity are considered under section 10(10D). The returns may differ depending on the combination of equity, debt or hybrid funds.


Returns are tax exempted

Returns could be high if the stock market performs well



Lots of charges (2% to 4%) 

A high percentage of management charges (1.35% per annum).


6. Direct Equity Investment

All the equity investments come with higher risks and therefore capable of generating extremely high returns. User can choose equity investment option if they are comfortable in losing as much as 50% of your capital.



Approx return per year = 18%

Time is taken to double the amount = 4 years



High-Risk factor.

To start investing in equity, the user needs a Demat account.


7. Mutual Funds

Mutual funds considered the most convenient and easy way of investing. With mutuals funds such as Canara Robeco Bluechip Equity, Axis Bluechip and Kotak Bluechip Fund. The investment in mutual funds is a lump sum or monthly SIP for an amount as low as Rs. 500.



Approx return per year = 16%

Time to double the investment = 4.5 years



High-Risk factor or price movements

Affected by market movements in NSE/ BSE

Fund houses charge expense ratio (1.05%).


8. Commercial Real Estate

Commercial real estate offers rental income and capital appreciation. A good investment in office and shop spaces not only attract higher returns but also helps in investing money in various investment assets.



Approx return per year = 12%

Time to double the investment = 6 years



Selling real estate takes time.

Returns differ from property to property based on location.


9. Initial Public Offer (IPO)

The best thing about investing in IPO is that the money gets blocked only for 7 to 15 days. 



Approx return per year = 20%

Time to double the investment = 3.6 years



Very high risk.

Subject to market movements


10.Fixed Deposit

FDs are the safest, easy and secure investment options offered by almost every bank and post offices through which people earn higher interest rates than a savings account. Any amount that a person is not going to use for a certain period can be safely put into a fixed deposit.


Final Words

Lack of investment knowledge will not be a reason for everyone anymore to start investing. There are many investment options available in the market. Calculate your investment goals, define your risk capacity and make out a good investment plan which best suited to your needs. 


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